TMK PJSC is offering to repurchase $200 million of bonds as the Russian pipemaker seeks to hold half its debt in rubles.

The company will pay at least $1,025 per note from its $500 million of bonds due in 2018, according to a statement Thursday. The tender will be carried out in a so-called modified Dutch auction, with increments of $1.25 per note over the minimal price, TMK said.

TMK is cutting its share of dollar debt after revenue at its North American unit slumped40 percent in the first half as the drop in oil and gas prices slowed shale drilling in the U.S. The company’s reliance on Russian sales has increased, spurring the shift into ruble borrowing, Vladimir Shmatovich, the vice-president of strategy and business development, said on Oct. 23. By the end of the year, the company plans to have 40 percent of its debt in rubles, compared with about 30 percent now, he said.

The 2018 bonds surged after the announcement, lowering the yield 61 basis points to 6.78 percent, the lowest since August last year.

Citigroup Inc. and JPMorgan Chase & Co. are organizing the buyback, TMK said. The offer expires on Nov. 9 with the settlement planned for Nov. 13.

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